Market Speculates on Fed Rate Pause and Potential Cuts by 2026

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News from January 28, 2026, indicates a 97.2% probability of a rate pause in the next Federal Reserve decision, with only a 2.8% chance of a 25-basis-point rate cut. Market sentiment, as reflected in the fear and greed index, shows increasing concern that the pause could signal the end of the easing cycle. By the end of 2026, the probability of no further rate cuts is 10.2%, while cumulative cuts of 25, 50, 75, 100, and 125 basis points are expected with probabilities of 28.8%, 33%, 19.8%, 6.8%, and 1.3%, respectively.

BlockBeats news: On January 28, according to the CME FedWatch data, before the interest rate decision is announced tonight, the probability of a 25-basis-point rate cut stands at only 2.8%, while the probability of maintaining rates—i.e., a pause in rate cuts—is at 97.2%. Additionally, the market is beginning to worry whether, after this "certain" pause in rate cuts, the Federal Reserve will enter a prolonged period of observation, and whether this pause in rate cuts might quietly signal the end of the rate-cutting cycle.


Current data shows that by the end of 2026, the probability of no interest rate cuts for the entire year is 10.2%, the probability of a cumulative 25 basis points of rate cuts is 28.8%, the probability of a cumulative 50 basis points of rate cuts is 33%, the probability of a cumulative 75 basis points of rate cuts is 19.8%, the probability of a cumulative 100 basis points of rate cuts is 6.8%, and the probability of a cumulative 125 basis points of rate cuts is 1.3%.

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